The Ministry of Public Service has dismissed a pension formula issued by the ministry of Finance for determining pension and gratuity as directed by Keith Muhakanizi.
The permanent secretary in the Ministry of Public Service, Ms. Catherine Bitarakwate Musingwiire on August 9 wrote to all ministries, departments and local governments, asking them to disregard an earlier communication issued by her Finance counterpart, Mr Keith Muhakanizi, on the method for gratuity computation adding that the formula is fake and will promote cheating on how much people are supposed to get for their pension and gratuity.
“I refer to the letter by the Permanent Secretary and Secretary to the Treasury, communicating to all accounting officers, among other things, the formula for gratuity computation. In the letter, the formula for gratuity was stated as length of service multiplied by one five hundredth and the annual basic salary (gratuity = LS x 1/500x annual basic salary). This formula is not correct and should, therefore, be disregarded,” Ms Musingwiire noted.
Mr Muhakanizi said processing payment of pension and gratuity should be based on the time of retirement where those who retire first should access the benefits first and all this should be based on the last salary scale paid to that particular retiring staff as indicated on the last payslip
However Ms. Catherine said her ministry has an automated pension and gratuity formula in the Integrated Personnel and Payroll System to ensure accuracy of the computation results and that no benefit should be computed outside the database clarifying that while computing pension and gratuity in case of mandatory retirement, one looks at the length of service in months, annual basic salary at retirement, mode of retirement and the pension fraction of one five hundredth (1/500).
Sources at Public Service also agreed with Mr Muhakanizi’s submission that some accounting officers were soliciting for bribes before they can process pensioners’ pay but also noted that computation outside the data base will cause more harm.
Muhakanizi has recently been making headlines over UTL and now hardly a few days before the audit is concluded, he has already hoped onto the Pension wagon trying to distort the system which is clear indication that the government and it’s people are in their evenings panicking to make sure no motive is left unattended to.